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David Darst’s Q1 2024 Market Recap

David Darst’s Q1 2024 Market Recap

David Darst, CFA – Senior Advisor and Investment Strategist at The Family Office, shares his market recap discussing major events in Q1 2024. Below are the highlights:

Apr 9, 2024Market Recap- 1 min
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  • The mega-cap and tech stocks continued to outperform the broad market indices in the quarter.

  • China’s Q1 growth of only 1.2% reflects ongoing economic and financial challenges, including a weak real estate sector and export markets. In contrast, Japan grew by 20%.

  • The US economy remains resilient, and according to the latest economic outlook by the International Monetary Fund, it is expected to grow by 2.1% this year.

  • The two-year and 10-year Treasury yields were up in Q1 to 4.59% and 4.20%, respectively (up 0.36% and 0.32%).

  • Inflation has been slowly easing in the US during the quarter, with goods inflation entering negative territory. However, services inflation remains persistent, a key concern of the Federal Reserve.

  • Market expectations for interest rate cuts in 2024 were revised down from between 4 and 6 to just 3 in Q1.

  • The ‘Magnificent Seven’ tech stocks also showed disparity, with Apple and Tesla dropping 11% and 29% respectively, likely due to their China exposure.

  • The new macroeconomic environment favors credit over equities. At The Family Office, we believe the 60/40 model should be reconsidered, with alternatives like private credit and real estate debt playing a larger role.

  • While values have fallen in the private equity space, particularly in middle-market companies, investors should remain selective and diligent.

Watch the full video above.

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